Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the (a) administrative cost and (b) effectiveness of the 25 pence addition to the state pension for pensioners aged 80 and above.
Age addition payments are made automatically as part of the person’s ongoing State Pension entitlement. The administration costs are therefore negligible.
The age addition should be considered alongside the range of other measures and benefits that are available to pensioners over age 80. These include Pension Credit which can top up a pensioner’s income to a minimum of £177.10 a week for single pensioners and £270.30 for couples and provide access to a range of other benefits such as help with rent, council tax, energy bills and, for those aged 75 or over, a free television license. Moreover, households with a person aged 80 or over receive a Winter Fuel Payment of £300, instead of the standard Winter Fuel Payment of £200 for households with a pensioner below that age.
The age addition is only payable to those who reached State Pension age before 6 April 2016 – it is not paid to those receiving the new State Pension.